Rent renewal

80sDiesel

What would be a fair % increase on rent for land that was coming to the end of its 5 year lease end.

Reggie.

80sDiesel wrote: »

What would be a fair % increase on rent for land that was coming to the end of its 5 year lease end.

Once you looked after the land I would have thought the price should be the same

wrangler

Reggie. wrote: »

Once you looked after the land I would have thought the price should be the same

Demand has increased hugely since quotas were finished

Reggie.

wrangler wrote: »

Demand has increased hugely since quotas were finished

Has it?

wrangler

Reggie. wrote: »

Has it?

Where are all the dairy expansions getting the extra land if not renting it

PoorFarmer

80sDiesel wrote:

What would be a fair % increase on rent for land that was coming to the end of its 5 year lease end.

Would all depend on how happy you are with the current tenant I would think. If they pay on time and are keeping the land in good condition I would think little or nothing of an increase. Would the extra money be worth the hassle of a bad tenant if the current one isn't interested?

Reggie.

wrangler wrote: »

Where are all the dairy expansions getting the extra land if not renting it

I know of a few dairy farmers nesr to you that are decreasing or stopping expansion. They have taken the hard lessons this year on board.

Don't think the major expansion will continue for much longer.

Reggie.

PoorFarmer wrote: »

Would all depend on how happy you are with the current tenant I would think. If they pay on time and are keeping the land in good condition I would think little or nothing of an increase. Would the extra money be worth the hassle of a bad tenant if the current one isn't interested?

And have the land wrecked after the term

80sDiesel

PoorFarmer wrote: »

80sDiesel wrote:

What would be a fair % increase on rent for land that was coming to the end of its 5 year lease end.

Would all depend on how happy you are with the current tenant I would think. If they pay on time and are keeping the land in good condition I would think little or nothing of an increase. Would the extra money be worth the hassle of a bad tenant if the current one isn't interested?

Thanks. But in real terms ( with inflation ) he would be getting it cheaper. And if a lease is for 5 years that would mean rent for 10 years which has not kept with inflation.
Certainly dont need the hassle of a potential bad tenant but no point in 'giving' it away either.
And the hedge cutting guy seems to keeping above inflation in what he now charges me!

jaymla627

80sDiesel wrote: »

Thanks. But in real terms ( with inflation ) he would be getting it cheaper. And if a lease is for 5 years that would mean rent for 10 years which has not kept with inflation.
Certainly dont need the hassle of a potential bad tenant but no point in 'giving' it away either.

If your that worried link rent price to milk/beef/lamb price on a yearly basis, you can’t get blood out of a stone, if the returns aren’t been made from the farmer leasing your land is he ment to pay extra for the privledge of been a busy fool

mahoney_j

Reggie. wrote: »

I know of a few dairy farmers nesr to you that are decreasing or stopping expansion. They have taken the hard lessons this year on board.

Don't think the major expansion will continue for much longer.

Good spring and good summer next year and SOME will forget all about the last 12 months .im gone as far as I’m going ,consolidate and improve efficiencies and putting more value on time is alll that’s on my meneu from now on ,

Reggie.

mahoney_j wrote: »

Good spring and good summer next year and SOME will forget all about the last 12 months .im gone as far as I’m going ,consolidate and improve efficiencies and putting more value on time is alll that’s on my meneu from now on ,

Yeah plenty around here are doing the same. 100 cows seems to be the magic number

80sDiesel

jaymla627 wrote: »

80sDiesel wrote: »

Thanks. But in real terms ( with inflation ) he would be getting it cheaper. And if a lease is for 5 years that would mean rent for 10 years which has not kept with inflation.
Certainly dont need the hassle of a potential bad tenant but no point in 'giving' it away either.

If your that worried link rent price to milk/beef/lamb price on a yearly basis, you can’t get blood out of a stone, if the returns aren’t been made from the farmer leasing your land is he ment to pay extra for the privledge of been a busy fool

So i should replace the busy fool for a cunning fox.

Dinzee Conlee

80sDiesel wrote: »

Thanks. But in real terms ( with inflation ) he would be getting it cheaper. And if a lease is for 5 years that would mean rent for 10 years which has not kept with inflation.
Certainly dont need the hassle of a potential bad tenant but no point in 'giving' it away either.
And the hedge cutting guy seems to keeping above inflation in what he now charges me!

Google says inflation has been under 1% for the last 5 years, and was negative for some of that
https://tradingeconomics.com/ireland/inflation-cpi

It all hangs on current lease - if you are getting paid top dollar already, and happy with your tenant, then I wouldn't be too set on an increase... And you will only know what top dollar is, by going to the open market, and your current tenant might walk if you do this... So, hard to know

Farming is a poorly paid job - but that doesn't mean you shouldn't try to get as well paid as you can either. The farmer buying at the mart, doesn't worry about the man selling, when he is getting the animals cheap...

You could add a token increase, something small... So you feel you aren't standing still, but nothing too much on the guy taking it either, if you are happy with the current tenant...

EDIT : What was the price / acre set in the last lease, land type / details and main farming activity in the area... Maybe then, you could get an idea as to how you are fairing currently...

ganmo

80sDiesel wrote: »

Thanks. But in real terms ( with inflation ) he would be getting it cheaper. And if a lease is for 5 years that would mean rent for 10 years which has not kept with inflation.
Certainly dont need the hassle of a potential bad tenant but no point in 'giving' it away either.
And the hedge cutting guy seems to keeping above inflation in what he now charges me!

Inflation and agriculture are only ever talked about to compare prices received 40 years ago and today vs the cost of somethin over the same period.

Siamsa Sessions

Check out the survey the Journal does every year. Can’t find the link now but I’m sure you’d find it if you Google “Farmers Journal land price survey”.

Depends on what tenant’s enterprise is too. Doesn’t have to be dairy either to be making money as there’s plenty big beef lads around us with historically big entitlements. Plenty beef lads struggling obviously but not all are.

Calfscour

80sDiesel wrote: »

So i should replace the busy fool for a cunning fox.

Cunning fox!! Sounds like your not happy with the Tennant. Put up the price and get another guy. Simple really. But like good workers, good Tennant's are hard got.